CORRECTION: An earlier version of this post reported that Chicago had passed a resolution to cap executive compensation for banks receiving federal money through the federal bailout. The resolution has been proposed, but it has not been passed by the city council.

Chicago is considering a resolution that would restrict how much banks can pay their executives if they've received federal money under the Troubled Asset Relief Program. According to a copy of the resolution obtained by the Washington Post, any bank that receives funds through the federal bailout would have to pay an executive less than $400,000 a year, including bonuses.

If the bank -- or any of its affiliates -- chooses to pay executives more than $400,000 a year, it would not be allowed to operate within Chicago's city limits.

As far as we know, Chicago is the only city to consider this kind of measure so far.

This sounds a bit extreme.....but it does do the job that the Federal Government promised and didn't come close to delivering. Have this type of bill sweep through every major city and that will keep'em in line.

Of course the shareholders would have to force by vote to take the company in that direction or throw out the current board. Not likely.